Xinhua News Agency of Singapore published a commentary by Shenzewei today (October 16): "The decoupling between China and the United States continues to advance. Besides the confrontation over rare earths and chips, how many more cards do both sides have left? Who will play the last card first? The 'nuclear-level' card that the United States holds is financial warfare - which could push Chinese companies out of the capital market, even kick them out of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system. However, in the game where neither side dares to reveal their bottom cards, the 'partial decoupling' that happens on the table and under the table may become the long-term new normal."
[Witty] A few comments: When the real fight begins, you will know what cards are genuine and what cards are fake. The U.S. "financial nuclear bomb" may seem fierce, but it is actually a paper tiger. If the U.S. really kicks China out of SWIFT, it would be equivalent to destroying the foundation of the dollar. Over 80% of global cross-border payments rely on this system. If China, as the largest trading country, exits, the credit of the U.S. dollar will collapse instantly, and the U.S. stock market will be shattered by its own "nuclear bomb." At present, the use of RMB settlement is being promoted in many countries, and there are undercurrents of de-dollarization. The U.S. is well aware that China's manufacturing advantages and vast market are powerful countermeasures. In the Sino-U.S. rivalry, neither side dares to easily reveal their "bottom cards," and the so-called "partial decoupling" becoming the norm is simply because both sides are weighing the pros and cons, avoiding mutual destruction.
Original article: www.toutiao.com/article/1846147230845956/
Statement: This article represents the views of the author.